Highlights of the Beige Book released March 3, 2021:
- Economic activity expanded modestly from January to mid-February
- Reports on consumer spending and auto sales were mixed
- overall manufacturing activity for most Districts increased moderately from the previous report
- Commercial real estate conditions in the hotel, retail, and office sectors deteriorated somewhat
- Most Districts reported that employment levels rose over the reporting period, albeit slowly
- Several Districts reported modest wage increases for high-demand positions with many also noting upward pressure on wages to attract and retain employees
- Nonlabor input costs rose moderately over the reporting period, with steel and lumber prices increasing notably
- Reports on pricing power were mixed, with some retailers and manufacturers affected by input cost increases reporting the ability to pass prices through, while many others were unable to raise prices
- Several Districts reported anticipating modest price increases over the next several months
- Full text
This has a bit of everything but with non-farm payrolls coming up on Fridayand the soft reads today from ISM and ADP, the weak jobs outlook is underscored. The pricing side will be a very interesting one in the months ahead but I'm not sure there's anything new here.
On the bottom line, they're describing modest economic expansion through mid-Feb but the Atlanta Fed GDP tracker is at +10%.
